The E stands for economic distance which includes income disparities, purchasing power and economic conditions. Dell has been producing cheaper computers but it has not been until now that the consumers have included computers as a need. People in this region have low incomes and they usually depend upon internet cafes to use computers so Dell positioned itself wisely by selling to enterprises and public sectors only. But now trends and economic situations have changed and people are buying computers more than ever so Dell has now come up with retail stores to sell its computers.
Dell is addressing the challenges of this market in the Asia-Pacific region because in the past people could not afford to buy PC’s and they went to cafes mostly but now things have changed and the consumer market for PC’s is more lucrative and people can afford PC’s. But since the market in this region is not very used to purchasing online since the trend of purchasing online is still in its infant stages and price is a deciding factor for customers so it’s important that they get to see and check before purchasing expensive items like a PC so selling through retail outlets is a social norm. Customization in PC’s has still got to inculcate in the psyche of customers of this region. Thus, Dell has now come up with retail outlets to sell its computers to the mass markets and this is a challenge for Dell since they had to break their business norm and competency in order to serve the market in this region. Although this must have been tough for Dell but the company is addressing challenges of these markets effectively.
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